[F1PART 3U.K.Duty to keep and preserve records
Textual Amendments
F1Sch. 7A inserted (with effect in accordance with Sch. 5 para. 25(1)(2) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 5 para. 2 (with Sch. 5 para. 28)
Duty to keep and preserve recordsU.K.
38(1)A company which is a reporting company in relation to a period of account of a worldwide group must—U.K.
(a)keep such records as may be needed to enable it to submit a correct and complete interest restriction return for the period, and
(b)preserve those records in accordance with this paragraph.
(2)The records must be preserved until the end of the relevant day.
(3)In this paragraph “the relevant day” means—
(a)the sixth anniversary of the end of the period of account, or
(b)such earlier date as may be specified in writing by an officer of Revenue and Customs (and different days may be specified for different cases).
(4)If the company is required to submit an interest restriction return for the period before the end of the relevant day, the records must be preserved until any later date on which—
(a)any enquiry into the return is complete, or
(b)if there is no enquiry, an officer of Revenue and Customs no longer has the power to enquire into the return (but, for this purpose, paragraph 42 is to be ignored).
(5)If the company is required to submit an interest restriction return for the period after the end of the relevant day and has in its possession at that time any records that may be needed to enable it to submit a correct and complete return, it is under a duty to preserve those records until the date on which—
(a)any enquiry into the return is complete, or
(b)if there is no enquiry, an officer of Revenue and Customs no longer has the power to enquire into the return (but, for this purpose, paragraph 42 is to be ignored).
(6)The duty under this paragraph to preserve records may be discharged—
(a)by preserving them in any form and by any means, or
(b)by preserving the information contained in them in any form and by any means,
subject to any conditions or exceptions specified in writing by an officer of Revenue and Customs.
(7)The Commissioners may by regulations—
(a)provide that the records required to be kept and preserved under this paragraph include, or do not include, records specified in the regulations, and
(b)provide that those records include supporting documents so specified.
(8)The regulations may make provision by reference to things specified in a notice published by the Commissioners in accordance with the regulations (and not withdrawn by a subsequent notice).
Penalty for failure to keep and preserve recordsU.K.
39(1)A company which fails to comply with paragraph 38 is liable to a penalty not exceeding £3,000.U.K.
(2)If a company becomes liable to a penalty under this paragraph, an officer of Revenue and Customs must—
(a)assess the penalty, and
(b)notify the company.
(3)The assessment must be made within the period of 12 months beginning with the day on which an officer of Revenue and Customs first becomes aware that the company has failed to comply with paragraph 38.
(4)A company may, by notice, appeal against a decision of an officer of Revenue and Customs that a penalty is payable under this paragraph.
(5)Notice of appeal under this paragraph must be given—
(a)within 30 days after the penalty was notified to the company,
(b)to the officer of Revenue and Customs who notified the company.
(6)A penalty under this paragraph must be paid before the end of the period of 30 days beginning with—
(a)the day on which the company was notified of the penalty, or
(b)if notice of appeal against the penalty is given, the day on which the appeal is finally determined or withdrawn.]